- Hong Kong Housing Prices Continue to Drop
- As expected, the Asia property prices for places like Hong Kong (and China and Singapore as well) continue to drop. The bubble it was in for several years was a bit delayed vs the western countries but it was inevitable as valuations were significantly higher than historical trends.
- Japan Corporations Cutting Outlook
- As mentioned on the last edition, the Yen is not sustainable at its current level if Japanese companies are to be competitive. Its not a question of whether Japan needs a devaluation, its a question of how and whether the Japanese government is capable of doing it.
- Case Shiller Index Shows House Prices Continue To Drop
- While indicators show the market is no longer accelerating, the market is still yet to fully turn around. Has it been lounging around in the bottom? Maybe.
- Last Year's Laggards Are This Year's Heroes
- Last year's poor performers (hello financials) have outperformed this month so far. Lets see if they can keep this up.
Tuesday, 31 January 2012
Daily Reads
Another edition...
Monday, 30 January 2012
Daily Reads
Another edition:
- Yen at 3 month High
- Despite all economic rationality, Yen continues to stay high. How long can it last before every Japanese company goes bankrupt?
- Japan Jobless Rate Rises on Yen
- Corollary to the above comment
- Portugal Yields Soar
- Greece version 2.0 - Here We Come
- Is the Golden Cross Real?
- Some bullish indications from this signal...but will it continue?
- MF Global Client Money - Gone
- This is a very bad confidence issue for the normal investor. If you can't trust your money is yours, why would you ever "invest" it? The SIPC needs to be a REAL trusted organization like the FIDC as opposed to an industry shill as it is today.
- Financial Exposure to Europe Debt
- This bodes badly for JP Morgan, BoA, and Citi...
Sector Performances and Why S&P Performance Today is Misleading
The S&P 500 had a great recovery today, recovering from being 1% down and closing only 0.25% down. Or did it? One curious note if you looked through sector performances is that the average stock did not recover nearly as well. As you can see from the sector breakdowns:
Source: Google
Even though the S&P ended down only 0.25%, almost none of the sectors performed well with the exception of Technology. In fact, tech & healthcare are the only 2 sectors that were above the S&P performance.
Another look via a heat map shows the same trend. Financials never recovered today and most other large sectors such as oil/commodities, consumer goods, conglomerates all underperformed. Tech was the standout factor. So be wary of today's move. What initially looked like a strong recovery actually showed very little breadth which raises a red flag.
| Sector | Change | % down / up | |||||||
| Basic Materials | -0.76% | ||||||||
| Capital Goods | -0.51% | ||||||||
| Conglomerates | -0.81% | ||||||||
| Cons. Cyclical | -0.29% | ||||||||
| Cons. Non-Cyclical | -0.44% | ||||||||
| Energy | -0.46% | ||||||||
| Financial | -1.01% | ||||||||
| Healthcare | -0.10% | ||||||||
| Services | -0.33% | ||||||||
| Technology | +0.04% | ||||||||
| Transportation | -0.42% | ||||||||
| Utilities | -0.34% | ||||||||
Source: Google
Even though the S&P ended down only 0.25%, almost none of the sectors performed well with the exception of Technology. In fact, tech & healthcare are the only 2 sectors that were above the S&P performance.
Another look via a heat map shows the same trend. Financials never recovered today and most other large sectors such as oil/commodities, consumer goods, conglomerates all underperformed. Tech was the standout factor. So be wary of today's move. What initially looked like a strong recovery actually showed very little breadth which raises a red flag.
Source: Finviz.com
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